Section 156 demand notice: pay or dispute, and what to collect
When to reply
Pay within 30 days of receiving it, or dispute it (rectification or appeal) and ask for a stay.
If it's missed
Interest at 1% a month runs on the unpaid amount, and recovery action can follow.
What to collect from the client
- 1
Proof of tax already paid
Challans for any amount already paid.
- 2
Assessment order / intimation
The order behind this demand, if you have it.
- 3
Do you agree with the demand? question
General guidance, not legal advice. Every notice is different: go by the section, dates and instructions in the notice itself. Check its DIN with the Authenticate notice/order service on the income tax portal. Section numbers here are from the Income-tax Act, 1961; the Income-tax Act, 2025, in force from 1 April 2026, numbers them differently, so a newer notice may cite another section.
Other income tax notices
Track this notice to its reply-by date
Upload the notice and IntegralChase reads the section, PAN or GSTIN, year, DIN and reply-by date, reminds you 7, 3 and 1 day before, and sends the client this list in one click. First month free, no card.